PHILIPKUTTY JOSEPH vs BRANCH MANAGER, CATHOLIC SYRIAN BANK

THIS appeal is directed against the order dated 18.10.2001 passed in O.P. No. 282/2000 by the District Consumer Disputes Redressal Forum, Pathanamthitta. The appellant is the complainant.

FACTS, absolutely necessary for deciding the issues arising for consideration may briefly be stated here. The complainant had availed of a loan of Rs. 8,000/- from the opposite party Bank by pledging his National Savings Certificate worth Rs. 10,000/-. On 25.11.1996 when the complainant approached the opposite party Bank for settling the transaction, Bank was not ready to return the National Savings Certificate, on the ground that the National Savings Certificate has been lost irrecoverably from their custody. However the Bank promised that a duplicate certificate could be made available, that thereafter the loan amount need to be paid and that the Bank will not charge any interest on the loan amount for the period from 25.11.1996. On 28.11.1996, the Bank and the complainant jointly filed an application before the Postmaster, Head Post Office, Kottayam for issuing duplicate certificate and accordingly a duplicate certificate was issued. When the complainant approached the Bank to receive the duplicate certificate, Bank demanded the payment of the loan amount with interest up to 25.11.1996. The date of maturity of the certificate was 9.6.1999 and the eligible amount was Rs. 20,150/-. The relief claimed by the complainant is to give a direction to the Bank to return the duplicate copy of the National Saving Certificate after receiving the loan amount with interest up to 25.11.1996 and to pay to the complainant interest on the amount of Rs. 20,150/- (eligible amount of National Savings Certificate) with 12% interest from 9.6.1999, the date of maturity of the certificate till the date of returning the duplicate certificate. In the written version filed by the opposite party Bank the following facts not disputed. Complainant obtained a loan of Rs. 9,000/- from the Bank after pledging the National Savings Certificate. That certificate was lost from the Bank and the complainant and the Bank jointly filed an application for duplicate copy from the Post Office. Opposite party contended that Bank requested the complainant to deposit the loan amount with interest and to close the transaction and that the duplicate certificate would be returned as and when obtained. But the petitioner was not ready to repay the loan amount with interest to the Bank. It denied the allegation that the complainant was ready to repay the loan amount with interest to Bank on 25.11.1996. The complainant is not entitled to realise any interest from the Bank and prayed for dismissal of the complaint.

Complainant was examined as P.W. 1 and on his side he got marked Exts. P1 to P3 series. D.W. 1 was examined and Ext. R1 was marked on the side of the opposite party.

ON a consideration of the respective pleadings of the parties and evidence adduced by them in support of their rival cases, District Forum came to the conclusion that there is deficiency in service on the part of the opposite party Bank and directed opposite party to pay Rs. 5,000/- as compensation and a sum of Rs. 500/- as cost to the complainant. Complainant, being not satisfied with the order of the Forum below filed this appeal and challenged the order mainly on two grounds viz., the Forum below has not given a direction to return the National Savings Certificate on payment of loan amount with interest up to 25.11.1996 and Forum below failed or omitted to consider complainant''s claim for interest on the amount of Rs. 20,150/- @ of 12% p.a. from 19.6.1999 till the date of returning the duplicate National Savings Certificate to him.

LEARNED Counsel for respondent, supporting the finding of the District Forum submited that the complainant was never willing to repay the loan amount and the claim of the appellant for the interest at the rate of 12% on Rs. 20,150/- is not sustainable. The Manager of O.P. (D.W. 1) while giving evidence admitted in cross-examination that the loss of National Savings Certificate was brought to his notice when the complainant came to his office in 1995. He has also deposed the fact that he conducted a detailed inquiry, and complainant was contacted through his neighbour and got the application for obtaining a duplicate of the National Savings Certificate. On 18.2.2000 the same was settled and deposited in the Bank. He has also stated in his evidence that some balance is due as interest from the complainant and also admitted that the loan amount was only Rs. 7,500/- and not Rs. 9,000/- as stated in the version. He admitted that the loss of National Savings Certificate was brought to his notice on 2.6.1995 when he took charge as Manager, and complainant was informed about the loss of certificate only after 1 years. Evidence given by D.W. 1 clearly proved the fact that the complainant had approached the opposite party Bank in the year 1995 for repayment of the loan amount and he was not permitted to remit the loan amount on the ground that National Savings Certificate was not in opposite party''s possession. After obtaining the duplicate of National Savings Certificate, the loan account was settled on 10.2.2000.

FROM the finding recorded by the District Forum, it is clear that the District Forum has not considered the question whether any direction has to be given to return the National Savings Certificate to the complainant. We agree with the submission of the learned Counsel for the appellant that the opposite parties are bound to return the National Savings Certificate on settlement of the outstanding loan amount with interest as on 25.11.1996.

APPELLANT further contended that opposite party is liable to pay interest at the rate of 12% on the National Savings Certificate amount of Rs. 20,150/- from 9.6.1999. The District Forum awarded Rs. 5,000/- in lieu of compensation. In view of awarding of compensation by the District Forum we are of the view that appellant is not eligible for any further interest on the loan amount. In view of our above recorded finding, we modify the order of the District Forum to the extent that the opposite party shall return the National Savings Certificate (duplicate) on settlement of the outstanding loan with interest as on 25.11.1996, along with the compensation and costs awarded by the District Forum.

In the result, opposite party is directed to return the duplicate of National Savings Certificate (No. 6 NS/06/EE/288625) to the appellant on settlement of the outstanding loan with interest as on 25.11.1996 along with the compensation and costs awarded by the District Forum within 30 days of the payment of the loan amount with the prescribed interest till 25.11.1996. The appellant is entitled to Rs. 500/- as costs in this appeal. Appeal disposed of.